MNI BRIEF: Norges Bank Leaves Policy On Hold 'For Some Time'

Norges Bank left its policy rate unchanged at 4.5% at its January meeting and said that it was likely to stay there "for some time". (MNI NORGES BANK WATCH: Eyes On Guidance As Rates On Hold)

The central bank re-used the guidance it provided in December. @hile the most likely scenario was a prolonged period of unchanged policy it retatined the guidance line that it could hike if cost inflation remain elevated or cut if there was a more pronounced slowdown.

While the decision to leave policy unchanged was widely anticipated by analysts but there had been some speculation over whether the guidance would be tweaked to remove the reference to hikes. WIth no new forecasts published, Norges Bank's December in-house rate projection showing a cut largely priced in by the fourth quarter of this year remained the relevant path, with the central bank noting that December's Monetary Polic Report forecasts were largely in tact.